Module - 1 Chartered Market Technician - PTAIndia

1 Module -1 Chartered Market TechnicianRohanSharma Chartered Market Technician Association (CMT) The CMT Association has served the financial industry for nearly 50 years. Advancing the discipline of Technical Analysis History 1960s Started over 50 years ago Growth 137 Countries 49 Local chapters around the world 35k Participants in educational programming Area of Expertise TECHNICAL ANALYSIS RISK MANAGEMENT QUANTITATIVE SYSTEMS DEVELOPMENT portfolio MANAGEMENT APPLIED BEHAVIORAL FINANCETop 15 Employers of CMT Members MORGAN STANLEY WELLS FARGO BANK OF AMERICA CHARLES SCHWAB FIDELITY RBC (CM & DS) WELLINGTONMANAGEMENT BLOOMBERG, LP CIBC CREDIT SUISSE TD AMERITRADE BMO NESBITT BURNS NDR BARCLAYS UBSCMT Program The CMT Program demonstrates mastery of a core body of knowledge of investment riskin portfolio management. Our Market philosophy is grounded in behavioral economicsand extends beyond classical pattern recognition techniques to include quantitative approachesto Market research and rules-based trading-system design and -2 CMT Exam & Registration ProcessRohan SharmaCMT LEVEL -ILearning Objectives CMT Program Eligibility Norms CMT Important Dates CMT LEVEL I , II , III CMT Membership Benefits CMT Registration Process CMT Course Fees CMT Program EligibilityTo earn your CMT designation, you must meet the following requirements: Complete of all three levels of the CMT Exam.

2 Become anCMT Member ($325 annual dues) Workin a professional analytical or investment management capacity for a minimum of three years; you must be regularly engaged in this capacity at the time of passing the CMT Important DatesDecember Attempt JUNE 2019 CMT Exam Administration The Level I , II and II exams will be offered approx. (November 27 December 5) Registration Dates Early registration: May 13 August 26, 2019 Standard registration: August 27 October 21, 2019 Late registration: October 22 November 15, 2019 CMT Important DatesJune Attempt JUNE 2019 CMT Exam Administration The Level I and II exams will be offeredMay 31 -June 9, 2019 The Level III exam will be held on June 6, 2019 Registration Dates Early Registration Begins:January 3, 2019 Standard Registration Begins:February 5, 2019 Late Registration Begins:April 2, 2019 Registration Deadline:May 9, 2019 CMT LEVEL I, II , III CMT Level I Focusing on the basic knowledge of the terminology and analytical tools used in technical analysis.

3 CMT Level II Measuring the candidate s competency in the application of concepts, theory, and techniques covered by the required readings. CMT Level III Integrates the candidate s understanding of the concepts identified in Level I with the practical application learned in Level Membership Benefits Learning ResourcesCareer DevelopmentProfessional NetworkingKnowledge BaseResearch PublicationsGlobal EventsCMT Registration ProcessCMT Program Fees CMT Program Fee comprises of : CMT Program Fees : $250 (One Time) Annual Membership Fees :$325 Curriculum Cost :$225 for Each Level Level I Exam Cost :$250 Level II Exam Cost :$450 Level III Exam Cost :$450 Lecture -3 CMT as a CareerRohan SharmaCMT as a Career Chartered Market Technician is generally not considered a job title, it is a designation that is recognized by those who employ financial and securities analysts. Employers who commonly hire CMT-designated analysts include stock brokerage firms, investment banks, mutual fund companies, pension fund management companies, and hedge funds.

4 CMT as a Career CMT commonly use a comprehensive approach to securities analysis that blends both fundamental and technical methods to predict the performance and price action of a company, a business sector or the economy. Based on their analysis, these analysts make buy and sell recommendations for their company's proprietary portfolio or for customers of their firm. CMT as a Career Quantitative Financial Research & Trading Risk Management Services Applied Behavioral Finance portfolio Management Technical Analyst Fund Manager Start your own Research Advisory Firm Roadmap to Career SuccessStep 1 Start Career in Technical Analysis (Recommended after Higher Education Along with Graduation) the Basics of Financial Markets & Its a Classroom Based Technical Analysis Program Trading or Investment Activity with small portfolio size for at least 6 Behavioral understanding of Risk , portfolio Management & Asset Class Selections , Trading Strategies and many with Live Trading learn more about Microsoft Excel & Basic Computer Program Language C++ & to Career SuccessStep 2 Enroll for Chartered Market Technician Program (Recommended Along with Graduation)

5 Preparing for CMT Exam deeply the concept of Quant Analysis , portfolio Management , Asset Allocation & get Deeper Drive in Technical Analysis Hand on Hand Experience on Advanced Software's for basic strategy making using formula & CMT Level 1 & Graduation year to Career SuccessStep 3 Prepare for CMT LEVEL II (Recommended Along with Graduation) Preparing for CMT Level II Exam and understand the in depth of all tools , Indicator & Oscillator . trading strategies & apply technical tools , indicator & oscillator on Advance Technical Software's like AmiBroker , CMT Level II Internship with Research , Broking or other quant firms to start getting exposure and work in each arena . Get Corporate Exposure . Roadmap to Career SuccessStep 4 Prepare for CMT LEVEL III(Recommended Along with Graduation) Preparing for CMT Level III Exam and understand the in depth of Risk Management , portfolio Management & Asset Allocation like broader Concepts.

6 & trade your strategies by applying technical tools , indicator & oscillator on Advance Technical Software's like AmiBroker , CMT Level III Exam & Graduation any Research Firm , Broking or other quant firms to start get work in your arena . Get Corporate Exposure till your graduation your working & professional skills & Develop professional Competence & -4 Knowledge Domains & WeightingsRohan SharmaCMT LEVEL IKnowledge Domains & WeightingsCMT LEVEL -ITopic Weightage CMT LEVEL IKnowledge Domain CMT LEVEL I Theory and History: 9%History of financial marketsHistory of technical analysisModern portfolio TheoryDow theoryBehavioral finance Markets 5%Historical Market dataTraditional asset classesAlterative asset classesCurrenciesNon-US marketsMarket indicesExchanges Markets Indicators: 7%Breadth indicatorsIndex constructionGovernment/Fed reportsPrivate money flowsSentiment measuresVolatility Chart Construction: 5%Scaling methodsLine chartsBar chartsCandlestick chartsPoint and figure chartsVolume Trend Analysis: 16%Trend linesRegression analysisMoving averages Chart and Pattern Analysis.

7 23%Classic pattern recognitionCandlestick pattern recognitionElliott Wave PrincipleFibonacci price analysisSupport and resistanceRelative Strength IndexMoving Average Convergence/DivergenceBollinger BandsStochasticsKnowledge Domain CMT LEVEL I Confirmation: 3%-Open interest and volume Cycle: 5%-Cyclical price patterns Selection and Decision making: 13%-Relative strength-Forecasting techniques-Strategic models System Testing: 5%-Back testing-Order execution and slippage Statistical Analysis: 6%-Descriptive statistics-Fundamentals of probability Ethics: 3%-Code of Ethics and Standards of Professional ConductKnowledge Domain CMT LEVEL I The CMT Level I exam tests on introductory concepts and definitions in technical analysis. The actual exam consists of 132 multiple-choice questions of which 120 are scored items. The remaining 12 questions are under trial for future use. Candidates have two hours to complete the 132 questions on the exam. The exam is delivered on a computer in Prometric testing facilities.

8 Please be sure to schedule your exam well in LEVEL IIKnowledge Domains & WeightingsCMT LEVEL -ITopic Weightage CMT LEVEL IIKnowledge Domain CMT LEVEL IITheory and History: 5% Behavioral finance Adaptive Market HypothesisMarket Indicators: 8% Breadth indicators Index construction Sentiment measures VolatilityChart Construction: 3% VolumeTrend Analysis: 15% Trend lines Multiple time-frame analysis Breakouts Moving averages Trend strength indicatorsChart and Pattern Analysis: 15% Gap analysis Support and resistanceConfirmation: 6% Oscillators and divergence Sector rotation Intermarket signalsCycles: 3% Seasonal cyclesSelection and Decisionmaking: 10% Noncorrelatedassets Relative strength Forecasting techniquesKnowledge Domain CMT LEVEL IISystem Testing: 10% Algorithmic development Optimizing entry and exit rules Performance measuresStatistical Analysis: 7% Inferential statistics Ethics: 3% Code of Ethics and Standards of Professional ConductRisk Management: 15% Absolute and relative risk Risk modeling Value at Risk Volatility risk Liquidity risk Diversification Stops v hedging Leverage risk portfolio risk management Risk measures Risk-based performance measuresKnowledge Domain CMT LEVEL II The CMT Level II exam tests on the theory and analysis of applied technical analysis The actual exam consists of 170 multiple-choice questions of which 150 are scored items.

9 The remaining 20 questions are under trial for future use. Candidates have four hours to complete the 170 questions on the exam. The exam is delivered on a computer in Prometric testing facilities. Please be sure to schedule your exam well in LEVEL IIIK nowledge Domains & WeightingsCMT LEVEL -ITopic Weightage CMT LEVEL IIIK nowledge Domain CMT LEVEL IIIRisk Management : 21% Risk management (basics of probability & statistics, modeling risk factors, number of assets and impact on portfolio , managing risk through correlation, VAR, performance and risk metrics, Market volatility and fat-tailed distributions, correlation and diversification, managing individual trade risk, managing risk for an entire portfolio ) Position sizing Quantitative and Statistical analysis System development and testingAsset Relationships : 18% Intermarket analysis Relative strength Sector rotation portfolio Management : 18% portfolio management (performance measurement , tactical asset allocation, asset correlation, alternative investments)Knowledge Domain CMT LEVEL IIIB ehavioral Finance : 10% Behavioral financeVolatility Analysis.

10 7% Volatility Analysis Classical Methods : 21% Candlestick analysis Momentum investing Oscillators and other technical studiesEthics : 5% Code of Ethics and Standards of Professional ConductKnowledge Domain CMT LEVEL III The CMT Level III exam tests the candidate s ability to integrate a wide range of concepts and tools into the application of technical analysis Candidates have four hours to complete the exam. The exam is marked on a scale of 240 points. A section worth 30 points is estimated to require 30 minutes to complete. The exam is delivered on a computer in Prometric testing facilities. Please be sure to schedule your exam well in -5 Tips & Tricks to Clear CMT Level IRohan SharmaTop 5 Tips & Tricks to Clear CMT Level IGet Early Idea about Technical Analysis & Live Market Trading'sShort Notes Get In-depth Concept on Each Topic2 Time Book Coverage3 Times Mock TestTrick No 1 Market Trading Live Market trading's help you to connect with CMT Get a small technical analysis course which apply on real time markets by using tools & techniques.